sheila bair is former chair of the fdic thanks for your time. >> happy to be here thank you. >> numbernse that somehow the executives are somehow getting off scot-free, we may see a lot of demands for claw backs, do you expect equifax have to do that >> it seems completely appropriate. the board has said they are considering it let's hope it's meaningful i think he's going to have a rough time, as you might expect. i read his testimony earlier today, and i think he's striking a good tone. thinking back to john stump a year ago, he's not belisling his employees, but thanking his employees, supporting his team i thought really striking a very humble tone. he made a lot of commitments about improvements in security let's hope that's all right. these government investigations will determine how much they have helped here and made progress, but overall, i think, you know, it's a bad situation they're probably making the best of it that they can. >> it's become common to heard the credit reporting agencies referred to as an unregulated piece of the financial industry, even though they're at

and hank is there and geithner and bernanke and sheila bair, and a bunch of others.nd they said, "we've been thinking hard, and we've come up with a plan that we think can help save america. and this would take capital off the table as being an issue for banks. if the nine of you take it, we think we can get hundreds of other banks to take it. and it'll be a major steppingstone to turn this thing around. and, you know, we-- and we calculated-- "yours is 25 billion, yours is 10 billion, yours--" it was cheap capital, by the way. it was 6 percent "preferred stock" that we had to give the government equity warrants, which they made a lot of money on. they said, "i know you have to talk to your boards." couple of people said, "i'll take it." david: yeah. [audience laughing] i said, "you don't have to talk to your board?" i called my board, explain it to them, i told them it was bad for-- to be honest, that it was asymmetric thing. it was going to save some companies, hurt others. okay? so you could argue it was bad for jpmorgan and good for other people, but i said, "it'

i think, frankly, that's going to be the case for equifax as well >> brett, yesterday, sheila bair, theic chair, joined us and mentioned she thought bank-like regulation could be coming for these companies. and why shouldn't it and if it does, does that significantly change the earnings power >> well, i think thabs tt's the other component of it, what are the ongoing cost i think it's certainly safe to assume there's going to be an increased focus on security, going to be higher spending around security. whether that's at the company's own initiative, or, you know, through government mandates. so i do think it's fair to assume that, you know, there will be a long-term margin hit from this as well. >> leo, what do you think the long-term security aspect implications of this should be both for equifax, but for all the credit rating firms? >> well, there's no doubt that there will be more regulation and more spending on security. the question for me and other cyber security professionals is what can the adversary do with the information that was taken can they defeat other security control